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Energy Sector

Energy Sector. Siemens Electrical & Electronic Services - K.S.C.C. Contractor‘s Experiences in Project Implementation and Ideas for Improvement. Overview. History of Siemens Substation Business in Kuwait Introduction Project Implementation (PM@Siemens) Analysis of Obstacles

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Energy Sector

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  1. Energy Sector Siemens Electrical & Electronic Services - K.S.C.C. Contractor‘s Experiences in Project Implementation and Ideas for Improvement

  2. Overview • History of Siemens Substation Business in Kuwait • Introduction • Project Implementation (PM@Siemens) • Analysis of Obstacles • Ideas for Improvement • Discussion

  3. History of Siemens Substation Business in Kuwait 1968 1970 1980 1990 2000 2010 Delivery of first 132/33/11 kV substation First High Voltage GIS of Siemens outside Europe for MEW From 1970 - 1980 Commissioning of 12 Primary Substations From 1980 - 1990 Commissioning of 47 Primary Substations From 1990 - 2000 Commissioning of 6 Primary Substations From 2000 - 2010 Commissioning of 45 Primary Substations More than 100 turnkey substation projects were executed for MEW which represents more than 30% of the network

  4. Overview • History of Siemens Substation Business in Kuwait • Introduction • Project Implementation (PM@Siemens) • Analysis of Obstacles • Ideas for Improvement • Discussion

  5. Introduction Energy transmission is key integral part of the infrastructural development in Kuwait. In order to cater to the growing needs of electrical energy numerous primary substations were planned and executed in the last decade. Efficient project execution of these substation projects to meet the required deadlines has been the main interest of the substation contractors and MEW - the owner and the end user of the substations. During implementation of substations Siemens Project Management encountered obstacles which had mainly negative impact on the execution time and - as a result - on the cash flow in the project. Ideas for improvement in specific areas of the project shall support the owner as well as the contractor to reduce these obstacles in the future.

  6. Overview • History of Siemens Substation Business in Kuwait • Introduction • Project Implementation (PM@Siemens) • Analysis of Obstacles • Ideas for Improvement • Discussion

  7. PM@Siemens - Siemens Core Learning Programs Professional project management is a vital success factor for Siemens. Almost half of our revenues derive from project business, and more than 15,000 project managers work for our customers worldwide every day. Our goal is to continually improve our project-related processes. We have to sustainably increase our results and to minimize project risks. Our values – excellent, innovative and responsible – are our guiding principles in doing so. The PM@SiemensLearning Programs are long-term training programs which are geared to the PM@Siemens job profiles and which ensure the comprehensive and unified training of project managers throughout the Siemens Group. Project Implemetation (PM@Siemens)

  8. PM @ Siemens – Certification Levels

  9. PM @ Siemens – General Process Overview

  10. Overview • History of Siemens Substation Business in Kuwait • Introduction • Project Implementation (PM@Siemens) • Analysis of Obstacles • Ideas for Improvement • Discussion

  11. Analysis of ObstaclesExecution of Substations The successful execution of Primary Substations is related to the achievement of the following Milestones: • Site Handover with Building License • Civil Completion • Manufacturing & Shipment Completion • Erection Completion • Commissioning and Testing (TOAC) • FCC Late achievement of one or more Milestones results in a delay of completion

  12. Analysis of Obstacles • The main impact on delays during execution derives from:- late Design and Building Licenses- late Energizing- late FCC-Clearances. • These delays are affecting the customer as well as the contractor. • The late submittal of licenses is mainly affecting the contractor • The late energizing is mainly harmful for the owner.

  13. Overview • History of Siemens Substation Business in Kuwait • Introduction • Project Implementation (PM@Siemens) • Analysis of Obstacles • Ideas for Improvement • Discussion

  14. Ideas for ImprovementAreas for Improvement Analysis of the Project Implementation Process leads to the following areas for Improvement: • Planning • Communication • Process and Organization • Contract • Invoicing

  15. Ideas for ImprovementPlanning • Handling Municipality related issues (such as building license, site handing over) • Handling issues with other Ministry authorities such as MOC, MPW in relocating existing underground services. • Co-ordination within MEW to energize substation within contract period. • No change in site location.

  16. Ideas for ImprovementCommunication • Internal communication within MEW departments. • Introduce electronic form of communication for correspondences. • Implement regular Progress Meeting and Minutes of Meeting with MEW Management. • Open day for contractors to address contract issues.

  17. Ideas for ImprovementProcess and Organization • Demarcation of authorities with clear responsibilities for MEW concerned representatives. • Define the Process for Change in scope of contract with necessary templates and authorities. Introduce proper Variation Order Workflow. • Define scope of FCC general checks with necessary templates and authorities for contractors and MEW for resource management. • Soil investigations shall be carried out by the owner before tender opening.

  18. Ideas for ImprovementContract • Provision of Transport and Communication to the concerned MEW employee by MEW. • Liability should be limited to the total contract value. • Price Variation for raw material like copper, steel, concrete should be considered • Contract award for Cable- and OHL Works should be done in parallel to the award of the substation tender. • Proper definition of warrenty obligations:The release of 5 percent FCC rate shall be done according to the contractual defined time period of 12 resp. 15 months. Extended warranties for products and erection companies shall be settled with a bond.

  19. Ideas for ImprovementContract • Contractually the site handing over can last up to 6 months. In case more than one substation is contracted, this time period shall be reduced to enable the contractor to stagger the civil works and following activities. • As the completion of telemetry and Cable resp. OHL works are separately contracted, the completion cannot be influenced by the substation contractor. Therefore the TOAC should be released after commissioning and testing of the substation equipment.

  20. Ideas for ImprovementInvoicing • Spare Parts Payment should be done according to the payment terms for the main delivery. • Revision in Payment terms to 20% (advance payment), 65% (progress), 10%(TOAC), 5%(FCC). • The contractual due time for payments (45 days) is rarely achieved. Either the payment process could be reorganized or interests for delayed payment should be contractually agreed. • Monthly Progress Payment for erection shall be considered.

  21. Ideas for Improvement Thank You!

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